Bank of America Announces Full Redemption of Its Series Z Preferred Stock and Related Depositary Shares

Rhea-AI Summary

Bank of America (NYSE: BAC) has announced the full redemption of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series Z, and the corresponding depositary shares. The redemption will occur on October 23, 2024, at a price of $1,000 per depositary share. Additionally, a dividend of $32.50 per depositary share will be paid separately on the same date to holders of record as of October 1, 2024.

The redemption process will be handled through The Depository Trust Company (DTC), with Computershare Inc. and Computershare Trust Company, N.A. acting as the redemption agents. This announcement does not constitute an official notice of redemption under the governing documents of the Preferred Stock or Depositary Shares.

Positive

• Full redemption of Preferred Stock Series Z and related Depositary Shares, potentially simplifying the company's capital structure
• Payment of declared dividends of $32.50 per depositary share for the current semi-annual dividend period

Negative

• None.

News Market Reaction – BAC

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In the trading session that priced this news, BAC declined 0.99%, reflecting a mild negative market reaction.

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CHARLOTTE, N.C., Sept. 20, 2024 /PRNewswire/ -- Bank of America Corporation announced today that it will redeem all outstanding shares of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series Z (CUSIP No. 060505EM2), liquidation preference $25,000 per share (the "Preferred Stock"), and the corresponding depositary shares each representing a 1/25^th interest in a share of the Preferred Stock (CUSIP No. 060505EL4) (the "Depositary Shares"). 

The Depositary Shares will be redeemed simultaneously with the Preferred Stock on the upcoming dividend payment date on October 23, 2024 (the "Redemption Date"), at a redemption price of $1,000 per depositary share. Declared dividends of $32.50 per depositary share in respect of the outstanding Depositary Shares for the full current semi-annual dividend period from, and including, April 23, 2024 to, but excluding, October 23, 2024 will be paid separately on October 23, 2024, to holders of record on October 1, 2024, in the customary manner.  Accordingly, the redemption price of $1,000 per depositary share does not include any accrued and unpaid dividends. Dividends on the redeemed Depositary Shares will cease to accrue on the Redemption Date.

The Depositary Shares are held through The Depository Trust Company ("DTC") and will be redeemed in accordance with the applicable procedures of DTC.

Payment to DTC for the Depositary Shares will be made by Computershare Inc. and Computershare Trust Company, N.A., collectively, as redemption agent.  The address for the redemption agent is as follows:

Computershare Trust Company, N.A.
Attn: Corporate Actions
150 Royall St.
Canton, MA 02021

This press release does not constitute a notice of redemption under the certificate of designation governing the Preferred Stock or the deposit agreement governing the Depositary Shares.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 58 million verified digital users.  Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services.  The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).

Forward-Looking Statements

Certain information contained in this news release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions difficult to predict or beyond our control.  You should not place undue reliance on any forward-looking statement and should consider the uncertainties and risks discussed under Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, and in any of our subsequent Securities and Exchange Commission filings.  Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

www.bankofamerica.com

Investors May Contact:

Lee McEntire, Bank of America
Phone:  1.980.388.6780
lee.mcentire@bofa.com

Jonathan G. Blum, Bank of America (Fixed Income)
Phone: 1.212.449.3112
jonathan.blum@bofa.com

Reporters May Contact:

Jocelyn Seidenfeld, Bank of America
Phone: 1.646.743.3356
jocelyn.seidenfeld@bofa.com 

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SOURCE Bank of America Corporation

FAQ

When will Bank of America (BAC) redeem its Series Z Preferred Stock and Depositary Shares?

Bank of America will redeem its Series Z Preferred Stock and related Depositary Shares on October 23, 2024, which is the upcoming dividend payment date.

What is the redemption price for Bank of America's (BAC) Series Z Depositary Shares?

The redemption price for Bank of America's Series Z Depositary Shares is $1,000 per depositary share.

Will Bank of America (BAC) pay dividends on the redeemed Series Z Depositary Shares?

Yes, Bank of America will pay a declared dividend of $32.50 per depositary share for the current semi-annual dividend period, separate from the redemption price.

What is the record date for the final dividend payment on Bank of America's (BAC) Series Z Depositary Shares?

The record date for the final dividend payment on Bank of America's Series Z Depositary Shares is October 1, 2024.